How much advance written notice must an Aw franchisee give to exercise their option to renew?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must give us written notice of your election to exercise your option to renew at least nine (9) months before the end of the term of this Agreement.
Within sixty (60) days of our receipt of your notice, we agree to give you written notice of any deficiencies in your operation or historical performance of the Papa Ray's Pizza Restaurant which could cause us not to renew the Franchise.
Our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Papa Ray's Pizza Restaurant or of the Premises and will specify the time period in which those deficiencies must be corrected.
Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must provide written notice of their intent to renew their franchise agreement at least nine months before the current agreement's expiration. This notification allows Aw ample time to assess the franchisee's compliance with the agreement and operational standards.
The nine-month notice period is crucial for several reasons. It gives Aw time to evaluate the franchisee's performance and identify any deficiencies that need correction. Within 60 days of receiving the renewal notice, Aw will inform the franchisee of any issues that could prevent renewal, along with the necessary corrective actions and deadlines. This process ensures that franchisees have a fair opportunity to address any shortcomings.
If Aw fails to provide a deficiency notice within 60 days or a non-renewal notice at least six months before the expiration date, they may extend the agreement to allow the franchisee reasonable time to correct deficiencies or to provide the required six-month non-renewal notice. This clause protects the franchisee from abrupt non-renewal decisions.
Overall, the renewal process outlined in the Aw franchise agreement emphasizes compliance and provides a structured timeline for both the franchisee and franchisor to ensure a smooth transition into the next term, if all conditions are met. The franchisee must adhere to all terms and conditions of the agreement up to the expiration date to be eligible for renewal.